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Highlights
- Consumer defensive stocks belong to companies that offer widely used products, due to which their demand is generally evergreen.
- By investing in such stocks, investors can fetch long-term gains and diversify their portfolio risk.
- Investment in consumer defensive stocks can also help investors during tough times like market downturns and inflation, as their demand does not usually fall amid financial pressure.
Consumer defensive stocks belong to companies that offer widely used products, such as grocery, due to which their demand is generally evergreen.
By investing in such stocks, investors can fetch long-term gains and diversify their portfolio risk.
Let us explore some of the top Canadian consumer defensive stocks of 2021.
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1. Dollarama Inc (TSX:DOL)
Dollarama Inc saw its sales rise by 5.5 per cent year-over-year (YoY) to C$ 1.12 billion in Q3 FY2021. Its diluted net earnings were C$ 0.61 per share in the latest quarter, up by 17.3 per cent YoY.
The Montreal-based retailer pays a dividend of C$ 0.05, due next on February 4, 2022.
DOL stock zoomed by roughly 18 per cent year-to-date (YTD) and closed at C$ 60.96 apiece on Thursday, December 16.
2. Loblaw Companies Ltd (TSX:L)
Loblaw Companies Ltd is a Brampton-based retailer that owns and operates grocery, pharmacy and general merchandise stores.
Loblaw reported a revenue of C$ 16.05 billion in Q3 FY2021, up by C$ 379 million YoY. The retail firm posted C$ 431 million in net earnings in the latest quarter, which was a YoY growth of 26 per cent.
Its quarterly dividend of C$ 0.365 is scheduled for December 31.
The retail stock swelled by almost 64 per cent this year and closed at C$ 102.96 apiece on December 16.
Also read: Top 4 penny dividend stocks of 2021
3. George Weston Limited (TSX:WN)
George Weston Limited is a Toronto-headquartered holding firm that operates retail and real estate businesses.
George Weston reported net earnings of C$ 238 million Q3 FY2021. The firm’s next quarterly dividend of C$ 0.60 is due on January 1, 2022.
WN stock closed at C$ 147.51 apiece on December 16, having delivered a YTD return of over 55 per cent.
4. Metro Inc (TSX:MRU)
Montreal-headquartered grocer Metro Inc recorded sales of C$ 4.09 billion in Q4 FY2021. Its net earnings were 194 million in the latest quarter, noting a YoY increase of four per cent.
Stocks of Metro surged by over 16 per cent YTD and closed at C$ 66.13 apiece on December 16.
5. Rogers Sugar Inc (TSX:RSI)
Rogers Sugar Inc posted a revenue of C$ 243.23 million in Q4 FY2021. Its net earnings amounted to C$ 16.14 million in the latest quarter, up from C$ 12.95 million a year ago.
The Canadian sugar producer’s next quarterly dividend of C$ 0.09 is scheduled for February 1, 2022.
RSI stock closed at C$ 6.06 per share on December 16, having jumped by over 12 per cent quarter-to-date (QTD).
Also read: How to buy the best dividend stocks in Canada?
Bottom line
Investment in consumer defensive stocks can help investors through tough times like market downturns and inflation, as the sales for such companies do not usually fall drastically amid financial pressure.
However, investors ought to consider quality consumer defensive stocks that exhibit growth capabilities to avoid losses.
